Brian Wolfe | Jul 17 2025 15:00

Smart Moves for a Lower 2025 Business Tax Bill

Maximize Retirement Contributions

The summer months often offer a much-needed chance to catch your breath—a perfect time to plan proactively for tax season as 2025 hovers on the horizon. While it might seem rather far away, this is the moment to make timely and impactful financial decisions. One of the smartest moves is to maximize your retirement contributions. By channeling funds into accounts like a 401(k), IRA, or SEP IRA, you not only reduce your taxable income today but also build a robust financial future. Furthermore, contributing sooner allows you to take greater advantage of the power of compounding, which can result in significant savings over time.

Review Your Business’s Deductions

Conducting a mid-year review of your business expenses can unveil numerous opportunities for deductions, significantly lowering your taxable income. It’s crucial to stay diligent with recordkeeping and understanding what expenses are deductible. Think travel, office supplies, and insurance—these are just a few examples of categories where significant deductions can occur. Accurately recording and reviewing these expenses now ensures there will be no surprises when tax season arrives.

Make Note of Tax Credits

Don’t leave money on the table! Investigate available tax credits that can make a real difference in your year-end tax bill. Tax credits for energy-efficient upgrades, improvements for accessibility, or investments in product innovation are just a start. Understanding the criteria for these credits in advance can ensure you’re taking full advantage of the relief they offer and enhancing your business longevity.

Accelerate or Defer Income and Expenses

Sometimes, it’s not just about what you earn but when you earn it. By strategically accelerating or deferring income or expenses, based on your anticipated profits, you can achieve considerable tax savings. For instance, if you expect an unusually high income year, deferring income to the next year while accelerating expenses to the current year can lower your tax liability. It’s time to sit down and define a strategy that optimarily aligns with your financial forecast.

Take Advantage of Section 179 Deductions

Investing in qualifying equipment and making the most of Section 179 deductions can be another golden opportunity. This allows you to deduct the full purchase price of qualifying equipment or software in the current year, significantly reducing your tax bill upfront. This powerful tax advantage not only reduces tax liability but also supports business growth by enabling equipment upgrades.

Incorporating these strategies into your business operations now can lead to a noticeably lower 2025 tax bill and a stronger financial foundation overall. Remember, tackling financial planning doesn’t have to be a solo journey. Consider a mid-year tax check-in with a professional, and never hesitate to reach out for personalized advice or to address any questions. Proactive planning is the key to both tax savings and peace of mind.